Chandigarh: The investigation into an alleged large scale financial fraud involving government funds and former IDFC FIRST Bank official Ribhav Rishi has revealed details of alleged luxury spending, property transactions and foreign travel.
At the same time, questions have been raised about whether ordinary bank customers and depositors were affected by the case.
IDFC FIRST Bank has described itself as a victim of the alleged fraud and reported a financial loss of about ₹646 crore in principal, plus interest, after reimbursing affected government departments.
What Is the Case About?
- The case involves allegations of fraudulent transactions involving government accounts maintained with IDFC FIRST Bank and, separately, AU Small Finance Bank.
- The CBI has investigated alleged diversion of government funds from Haryana government departments and Chandigarh entities.
- In one set of cases, the alleged loss has been reported at about ₹657 crore, comprising approximately ₹504 crore involving Haryana government funds and ₹153 crore involving Chandigarh Smart City Limited.
- Ribhav Rishi, a former manager associated with an IDFC FIRST Bank branch in Chandigarh, is among the accused. Investigators allege that bank officials and other persons were involved in unauthorised transactions and the movement of funds through various entities.
- These allegations remain subject to the ongoing legal process.
CBI Probe Details Alleged Luxury Spending
- According to a woman’s statement cited in recent reports, Rishi allegedly paid her ₹10 lakh per month between August 2025 and January 2026, with the total reportedly amounting to ₹56 lakh.
- The woman, who is from Bihar and whose identity has not been disclosed, is described as a key witness in the investigation.
- Her statement reportedly also describes a Delhi property involving several crore rupees, luxury hotels and trips to Macao, Thailand and Dubai.
- The reported spending details are part of an investigation and should not be treated as proof that all such expenditure came from fraud proceeds unless established through the legal process.
Alleged Government Fund Transactions
- The CBI has alleged that fraudulent transactions were carried out through government accounts.
- In one investigation, the agency alleged that Rishi authorised at least 25 fraudulent debit transactions totalling about ₹187.35 crore across multiple government accounts.
- The investigation has also examined alleged shell companies, beneficiary accounts and the movement of funds.
What About Bank Customers and Depositors?
This is an important distinction.
- The ₹646 crore loss reported by IDFC FIRST Bank does not mean that ₹646 crore was collectively taken from ordinary savings accounts or fixed deposits of the bank’s retail customers.
- The bank has said that it was the victim of the alleged fraud and that it reimbursed the affected government departments.
- The reported ₹646 crore principal loss relates to the financial impact of the alleged fraudulent transactions involving the affected accounts.
- However, there is also a separate customer related allegation.
- In April 2026, a 77 year old NRI woman alleged that around ₹2.5 crore connected to her accounts had been diverted without her consent. An FIR was registered against Rishi and other bank officials, and the matter was reported to be under investigation.
- Therefore, it would not be accurate to say that no customer was affected at all.
- A more precise description is that the major ₹646 crore loss reported by the bank concerns the alleged government funds fraud, while separate allegations involving individual customers are also being investigated.
Did the Bank Reimburse the Government?
Yes.
- IDFC FIRST Bank stated that it had paid the principal and interest claimed by relevant Haryana government departments.
- Earlier figures reported during the investigation placed the payment at around ₹583 crore. Later court related disclosures referred to an overall principal loss of approximately ₹646 crore, plus interest.
- These figures relate to different stages and components of the case and should not automatically be treated as separate additional losses.
Bank Says It Strengthened Controls
- The bank has said that its internal review identified the alleged fraud and that it subsequently introduced additional preventive and technology based controls.
- The bank’s financial disclosures for FY 2025-26 recorded the financial impact of the incident.
Investigation Still Continuing
- The CBI investigation involves bank officials, government officials and other accused persons. Chargesheets have been filed in parts of the case, while further investigation and legal proceedings continue.
- The allegations against Ribhav Rishi and other accused persons have not, by themselves, established criminal guilt. Final responsibility will be determined through the judicial process.
